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MNCs may opt for setting up own captives
By siliconindia
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Thursday, 15 January 2009, 23:15 IST |
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Bangalore: Customers in offshoring industry are now desperately wanting for more control in their outsourced activities, thanks to the Satyam fiasco followed by its head's sensational confession to inflating balance sheet. There are reports that this situation could even lead the worried customers to setup their own captives to avoid any risk of their work being affected for some reasons unknown to them.
According to IT advisory firm Zinnov, customers of all sizes are now worried about the known and unknown risks involved and its resulting impact on the delivery of their services. The advisory firm further suggested that customers could now increasingly look at having their own captive centers. This is because of the fact that the size of the available talent pool in India has grown in the past seven years. More than two million professional are currently working in the Indian IT/ITeS industry. In terms of the fresh talent pool, there are about 650,000 science and engineering graduates passing out of colleges and universities in India.
"We now expect the clients to closely evaluate options of setting up their own captive centers or opt for new vendor evaluation techniques. In fact for those who have operations for many years now, we feel that it is the right time for them to consider options of having a direct presence or local program management offices for better control," said Vamsee Tirukkala, managing principal, Zinnov.
Zinnov said that India has evolved as one of the most sought after offshore destinations over the last 25 years. Currently a host to more than 720 MNCs spread across five key locations, India has evolved from being a low-cost destination to an innovation sandbox over the last decade.